Tagline
623-208-6098

September 2014 Archives

Am I eligible to file for chapter 13 bankruptcy?

Individual bankruptcy filers in Arizona can typically choose between Chapter 7 and Chapter 13. Chapter 13 is sometimes referred as wage earner's bankruptcy, but it is open to those who are self-employed or who operate a business that is unincorporated as long as certain requirements are met. However, an individual may not file for bankruptcy if an earlier bankruptcy case was dismissed during the previous 180 days due to the person's failure to appear in court or failure to comply with court orders. Furthermore, corporations and partnerships may not file for bankruptcy under Chapter 13.

How to file for bankruptcy

Debtors in Arizona may benefit from some information about filing for bankruptcy. In order to receive the protections provided by bankruptcy status, debtors are required to attend a government-approved credit counselor within 180 days before filing. In addition, before any outstanding balance can be discharged, applicants are required to complete a debt education course after filing for bankruptcy.

Options for eliminating high credit card debt

As Arizona residents may know, paying the minimum amount due on a credit card balance may be counterproductive. While there are times it might not be possible to pay more, the amount of interest paid on credit card debt may approach the original amount owed when a person pays the lowest amount possible. Hypothetically, someone with $18,000 of debt at approximately 18 percent interest paying about $400 per month would take about 76 months to pay it off. Additionally, the individual would pay about $12,200 in interest on the original $18,000.

Medical bills and credit score changes

Arizona families struggling with medical debt may be relieved to know that FICO will be changing the weight of medical debt in the determination of one's credit score. An estimated one-third of Americans deal with difficulties in paying medical debts, and this is also the leading reason for bankruptcy filings in the nation. It is reported that approximately 64 million individuals have medical bills in collections listed on their credit reports.

  • MCBA | Maricopa County Bar Association
  • State Bar of Arizona
  • ABA | American bar Association | Defending Liberty Pursuing Justice
  • Oregon State bar
  • NACBA | National Association of Consumer Bankruptcy Attorneys
  • NACA | National Association of Consumer Advocates
Schedule A Consultation Today

Attorneys You Can Depend On And Trust

The Dodds Law Firm, PLC, is located in Surprise and serves clients throughout the West Valley area. To schedule a consultation with a lawyer, call 623-208-6098 or toll free at 877-827-9906. You can also contact us online.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy